Off topic, but if you see the new Transformers movie you'll get a quick glimpse of a Volvo EC700C on a cargo ship. He's one of the Decepticons that dives into the ocean to fish out their leader and bring him back to life.
He takes one for the team when the others use him for spare parts to repair Megatron.
My first thought was that maybe Megatron is Tier IV already and they were scrapping our guy for TERP money.
I need to start leaving work at work.
Monday, June 29, 2009
Monday, June 22, 2009
When Can I Buy?
When you sell things for a living (heavy equipment and otherwise) that's a question that never gets old. It's a crucial one when it comes to TERP grants.
Buying equipment at the wrong time disqualifies it from receiving TERP funding.
In the early days of the program buyers could apply on units they purchased up to a year prior. That changed a few rounds back, but for those who don't follow the system's developments it can still come as a surprise.
Once a round starts it's open season. Not one day before.
For instance, the most recent round opened on December 20th, 2008. In that round you could apply for a grant on any equipment purchased starting on that date. If you bought an excavator on December 19th, 2008 then it was not eligible for that round.
Most people applied and waited for the results before buying which is completely understandable given the current economic climate.
So who can buy right now and be TERP eligible?
Buying equipment at the wrong time disqualifies it from receiving TERP funding.
In the early days of the program buyers could apply on units they purchased up to a year prior. That changed a few rounds back, but for those who don't follow the system's developments it can still come as a surprise.
Once a round starts it's open season. Not one day before.
For instance, the most recent round opened on December 20th, 2008. In that round you could apply for a grant on any equipment purchased starting on that date. If you bought an excavator on December 19th, 2008 then it was not eligible for that round.
Most people applied and waited for the results before buying which is completely understandable given the current economic climate.
So who can buy right now and be TERP eligible?
- Those approved in the most recent round that ended February 20th, 2009.
- Those approved in previous years' rounds who either have time left on their original contract or an official extension from the state.
Wednesday, June 17, 2009
Now What?
What should you be doing now?
If you've been approved for a TERP grant I'd suggest checking out this area of the TCEQ's TERP site.
You can get a look at how the process unfolds and have some kind of understanding even before the state's packet hits your doorstep. Their pdf files go beyond just the next step which is signing the contract accepting the grant.
If you're unsure of your status because no call has come as of yet you can be patient and continue to wait or - if you're ready to move forward on a purchase ASAP - you can call the help line the TCEQ set up. That number is 800-919-TERP (8377).
I only mention waiting because I know they have a long list of people to contact and if you're in a holding pattern as far as buying anyway you can save those folks some time and effort.
If you got approved on a contingency basis I honestly don't know what you can do other than wait.
In the previous post you saw the breakdown. You may still end up with a grant if those approved outright turn down their funding. The question is: how soon could that be?
We have seen customers in all three situations. If I hear of somebody on the contingency list being bumped up to grant recipient I'll post it here. If you or somebody you know gets moved please feel free to tell me what you can via comment or email.
If you've been approved for a TERP grant I'd suggest checking out this area of the TCEQ's TERP site.
You can get a look at how the process unfolds and have some kind of understanding even before the state's packet hits your doorstep. Their pdf files go beyond just the next step which is signing the contract accepting the grant.
If you're unsure of your status because no call has come as of yet you can be patient and continue to wait or - if you're ready to move forward on a purchase ASAP - you can call the help line the TCEQ set up. That number is 800-919-TERP (8377).
I only mention waiting because I know they have a long list of people to contact and if you're in a holding pattern as far as buying anyway you can save those folks some time and effort.
If you got approved on a contingency basis I honestly don't know what you can do other than wait.
In the previous post you saw the breakdown. You may still end up with a grant if those approved outright turn down their funding. The question is: how soon could that be?
We have seen customers in all three situations. If I hear of somebody on the contingency list being bumped up to grant recipient I'll post it here. If you or somebody you know gets moved please feel free to tell me what you can via comment or email.
Tuesday, June 16, 2009
Who Was Approved?
This is the breakdown according to the state:
That means there are 106 applications essentially on hold and they will be funded as any of the 217 approvals decide to decline their grant.
Although I don't have the exact breakdown for the last few years I'm pretty confident the percentage of funded applications took a dive this time.
This round was not one of the larger ones in terms of dollars available and as interest has grown so has the level of competition. Having more requests than money will do that.
Congratulations to those who received approval.
- They received 1,054 TERP grant applications.
- 806 applications met the specified criteria to be considered for funding.
- 217 of those were offered TERP grants.
- 106 others were held as contingency options.
That means there are 106 applications essentially on hold and they will be funded as any of the 217 approvals decide to decline their grant.
Although I don't have the exact breakdown for the last few years I'm pretty confident the percentage of funded applications took a dive this time.
This round was not one of the larger ones in terms of dollars available and as interest has grown so has the level of competition. Having more requests than money will do that.
Congratulations to those who received approval.
Friday, June 12, 2009
The Calls Have Started
A customer has contacted us to report he's been approved.
I'm not sure what the cost/ton cutoff is since that company actually went in at one of the lower numbers we submitted. I have a call into the state and will know more later.
For now the main thing is that the calls have started.
I don't know what order, if any, they call people in, but if you don't hear from them today don't get too worried. They usually have a lot of folks to contact.
When we do get a cutoff on the cost/ton remember that you have to meet the other program guidelines. If you submitted a cost/ton lower than the cutoff on your TERP grant application you aren't 100% locked in for a grant. You have to meet all the guidelines they lay out.
I'm not sure what the cost/ton cutoff is since that company actually went in at one of the lower numbers we submitted. I have a call into the state and will know more later.
For now the main thing is that the calls have started.
I don't know what order, if any, they call people in, but if you don't hear from them today don't get too worried. They usually have a lot of folks to contact.
When we do get a cutoff on the cost/ton remember that you have to meet the other program guidelines. If you submitted a cost/ton lower than the cutoff on your TERP grant application you aren't 100% locked in for a grant. You have to meet all the guidelines they lay out.
Wednesday, June 10, 2009
Location, Location, Location
A customer called with a good question today. His office is not in one of the EPA’s non-attainment counties, but his job site is. Can he apply to replace his machines under the TERP grant rules?
Yes.
Pushing paperwork around the office doesn’t really produce emissions. Pushing tons of rock and dirt around the job site does. The state cares where the machine operates.
If you aren’t sure which counties are eligible you can take a look at our TERP overview page. The state’s TERP page also lists these.
Before you apply for a round it would be worth your while to verify that your county is on the list.
Yes.
Pushing paperwork around the office doesn’t really produce emissions. Pushing tons of rock and dirt around the job site does. The state cares where the machine operates.
If you aren’t sure which counties are eligible you can take a look at our TERP overview page. The state’s TERP page also lists these.
Before you apply for a round it would be worth your while to verify that your county is on the list.
Monday, June 8, 2009
When Does The Clock Start?
Let’s say you applied for TERP funding and received an ERIG grant with a 7-year term. What exactly does that mean? When does that term officially begin?
Your 7 years (or 5 if you applied for the shorter contract length) start after you scrap your old machine and the state approves your disposition paperwork and photos.
In many cases the newly purchased piece of replacement equipment could have been on the job for months before you start the 7-year obligation. That means you’ll own and operate your equipment for the agreed-to number of hours for MORE than 7 years.
That is one reason we encourage folks to submit their request for reimbursement and disposition forms sooner rather than later, especially if they tend to put significant wear on a machine.
If nothing else be aware that your TERP grant term does not start the day the new machine arrives at your location unless you have already gone through the steps previously mentioned. That’s not the norm since people usually want their old units running up until the day the new one can take its place.
Your 7 years (or 5 if you applied for the shorter contract length) start after you scrap your old machine and the state approves your disposition paperwork and photos.
In many cases the newly purchased piece of replacement equipment could have been on the job for months before you start the 7-year obligation. That means you’ll own and operate your equipment for the agreed-to number of hours for MORE than 7 years.
That is one reason we encourage folks to submit their request for reimbursement and disposition forms sooner rather than later, especially if they tend to put significant wear on a machine.
If nothing else be aware that your TERP grant term does not start the day the new machine arrives at your location unless you have already gone through the steps previously mentioned. That’s not the norm since people usually want their old units running up until the day the new one can take its place.
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